Reputed Philly Mobster 'Skinny Joey' Merlino Back in Court

Merlino, 55, was among nearly four dozen defendants arrested in a 2016 crackdown on an East Coast crime syndicate that prosecutors say committed crimes including extortion, loan-sharking, gambling and more

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'Skinny Joey' Merlino Charged in FBI Sweep

"Skinny Joey" Merlino, reputed Philly crime boss, is among 46 suspects indicted on allegations of organized crime up and down the East Coast. (Published Friday, Aug. 5, 2016)

A reputed Philadelphia mob boss who reinvented himself as a restaurateur relapsed into a life of crime by orchestrating a health care fraud that made a fortune for an East Coast crime syndicate, a prosecutor said Tuesday in opening arguments at his federal trial.

Merlino "called the shots and he always called them in favor of taking and keeping money," Nicholas said.

The prosecutors said Merlino also sought to collect gambling debts for the syndicate, adding that the jury would hear recordings of him fretting over whether any "rats" and "stool pigeons" were lurking.

In his opening statements, defense attorney Edwin Jacobs said Merlino was framed by cooperating criminals with incentive to lie to save their own skins.

"Joey is accused of a bunch of crimes he didn't commit," Jacobs said.

Merlino, wearing a knit hoodie and gold chain, listened as Jacobs described how, after a stint in prison, his client moved to Florida to "live a normal and new life" with his family and four pet dogs. But he couldn't shake a gambling problem that made him vulnerable to manipulation by wire-wearing mob turncoat named John Rubeo, who gave him tens of thousands of dollars to feed his habit.

Merlino, 55, was among nearly four dozen defendants arrested in a 2016 crackdown on the syndicate that prosecutors say committed crimes including extortion, loan-sharking, casino-style gambling, sports gambling, credit card fraud and health care fraud. It operated in New York, Massachusetts, Pennsylvania, Florida and New Jersey.

Most of the defendants pleaded guilty to lesser charges, with Merlino the only one so far to go to trial on conspiracy charges. He's free on $5 million bond.

The government plans to have three cooperators as witnesses, including Rubeo, an associate with the New York-based Genovese crime family. Another witness is a government agent who served a five-day suspension after being accused of mishandling cooperators and investigative reports in the case, a topic the judge ruled the defense could cover in cross-examination.

Merlino once controlled the remnants of a Philadelphia-south Jersey organized crime family that was decimated by a bloody civil war in the 1980s and 1990s. Federal authorities say he was frequently targeted by murder plots after rivals put a $500,000 murder contract on his head.

He became a main suspect in a failed hit on another mob figure on Halloween 1989, but was never charged. He also served time for a $350,000 armored truck heist that same year.

In 2001, a jury acquitted Merlino and six co-defendants of three counts of murder and two counts of attempted murder that could have put him in prison for life. He was convicted of lesser racketeering charges and served 12 years in prison before being released in 2011.

Merlino claimed that he retired from the mob for good by running an upscale Italian restaurant in Boca Raton. The since-closed restaurant was called Merlino's.

In a 2013 interview, he said that life in the Mafia wasn't worth the stress of being double-crossed.